BILL NUMBER: AB 1348	CHAPTERED  09/26/00

	CHAPTER   673
	FILED WITH SECRETARY OF STATE   SEPTEMBER 26, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 24, 2000
	PASSED THE ASSEMBLY   AUGUST 23, 2000
	PASSED THE SENATE   AUGUST 22, 2000
	AMENDED IN SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   JUNE 12, 2000
	AMENDED IN ASSEMBLY   MAY 18, 1999
	AMENDED IN ASSEMBLY   MAY 6, 1999
	AMENDED IN ASSEMBLY   APRIL 8, 1999

INTRODUCED BY   Assembly Member Runner
   (Coauthor:  Senator Schiff)

                        FEBRUARY 26, 1999

   An act to amend Section 14320 of the Business and Professions
Code, relating to business practices.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1348, Runner.  Business practices:  trademark infringement.
   (1) Existing law prescribes the grounds for civil action by the
owner of a registered trademark in cases of trademark infringement.
   This bill would add to those grounds for civil action, knowingly
facilitating, enabling, or otherwise assisting a person to
manufacture, use, distribute, display, or sell any goods or services
bearing any reproduction, counterfeit, copy, or colorable imitation
of a registered trademark, without the consent of the registrant.
The bill would specify the actions that need to be done to establish
that a person is presumed to have acted knowingly, including a
requirement that the owner of the registered mark, an officer of a
corporation that is the owner of the registered mark, or the legal
counsel of the owner of the registered mark deliver to the alleged
offender a specified statement under penalty of perjury, thus
creating a new crime and a state-mandated local program.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14320 of the Business and Professions Code is
amended to read:
   14320.  (a) Subject to the provisions of Section 14340 a person
shall be subject to a civil action by the owner of a registered mark
and the remedies provided in Section 14330 for doing any of the
following:
   (1) Using, without the consent of the registrant, any
reproduction, counterfeit, copy, or colorable imitation of a mark
registered under this chapter in connection with the sale, offering
for sale, or advertising of any goods or services on or in connection
with which that use is likely to cause confusion or mistake or to
deceive as to the source of origin of those goods or services.
   (2) Reproducing, counterfeiting, copying, or colorably imitating
any mark of that type and applying that reproduction, counterfeit,
copy, or colorable imitation to labels, signs, prints, packages,
wrappers, receptacles, or advertisements intended to be used upon or
in conjunction with the sale or other distribution in this state of
those goods or services.  The registrant shall not be entitled under
this paragraph to recover profits or damages unless the acts have
been committed with knowledge that the mark is intended to be used to
cause confusion or mistake or to deceive.
   (3) Knowingly facilitating, enabling, or otherwise assisting a
person to manufacture, use, distribute, display, or sell any goods or
services bearing any reproduction, counterfeit, copy, or colorable
imitation of a mark registered under this chapter, without the
consent of the registrant.   Any action by a person is presumed to
have been taken knowingly following delivery to that person by
personal delivery, courier, or certified mail return receipt
requested, of a written demand to cease and desist that is
accompanied by all of the following:
   (A) A copy of the certificate of registration and of any claimed
reproduction, counterfeit, copy, or colorable imitation of the
registered mark.
   (B) A statement, made under penalty of perjury, by the owner of
the registered mark, by an officer of the corporation that owns the
registered mark, or by legal counsel for the owner of the registered
mark, that includes all of the following:
   (i) The name or description of the infringer.
   (ii) The product or service and mark being or to be infringed.
   (iii) The dates of the infringement.
   (iv) Any other reasonable information to assist the recipient to
identify the infringer.
   (4) The presumption created in paragraph (3) does not affect the
trademark owner's burden of showing that there was a violation of the
trademark law.
   (5) Paragraph (3) is applicable to a landlord or property owner
who provides, rents, leases, or licenses the use of real property
where any goods or services bearing any reproduction, counterfeit,
copy, or colorable imitation of a mark registered pursuant to this
chapter are sold, offered for sale, or advertised, where the landlord
or property owner had control of the property and knew, or had
reason to know, of the infringing activity.
   (b) Notwithstanding any other provision of this chapter, the
remedies given to the owner of the right infringed are limited as
follows:
   (1) If an infringer or violator is engaged solely in the business
of printing the mark or violating matter for others and establishes
that he or she was an innocent infringer or innocent violator, the
owner of the right infringed is entitled only to an injunction
against future printing of the mark by the innocent infringer or
innocent violator.
   (2) If the infringement complained of is contained in, or is part
of, paid advertising matter in a newspaper, magazine, or other
similar periodical, or in an electronic communication as defined in
Title 18 U.S.C. Section 2510(12), the remedies of the owner of the
right infringed against the publisher or distributor of the
newspaper, magazine, or other similar periodical or electronic
communication shall be confined to an injunction against the
presentation of the advertising matter in future issues of the
newspapers, magazines, or other similar periodicals or in further
transmissions of the electronic communication.  The limitation of
this subdivision shall apply only to innocent infringers and innocent
violators.
   (3) Injunctive relief is not available to the owner of the right
infringed with respect to an issue of a newspaper, magazine, or other
similar periodical or electronic communication containing infringing
matter if restraining the dissemination of the infringing matter in
any particular issue of the periodical or in an electronic
communication would delay the delivery of the issue or transmission
of the electronic communication after the regular time for delivery
and the delay would be due to the method by which publication and
distribution of the periodical or transmission of the electronic
communication is customarily conducted in accordance with sound
business practice, and not to any method or device adopted for the
evasion of this section or to prevent or delay the issuance of an
injunction or restraining order with respect to the infringing
matter.
   (c) An innocent infringer or innocent violator is any person whose
acts were committed without knowledge that the mark was intended to
be used to cause confusion, mistake, or to deceive.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
